Energy poverty in Spain: an income approach analysis

Abstract

ABSTRACTThis paper highlights the importance of approaching the energy poverty problem considering the income perspective. This approach is based on the economic analysis of the relationship between energy poverty, energy consumption and elements linked to household income. Robust conclusions are presented from the empirical analysis of statistical data to quantify and diagnose the problem of energy poverty in Spain, using econometric tools. Likewise, the relative importance of household income in the energy poverty problem is evaluated. The results reinforce the idea that energy poverty should be addressed, preferably, through the general social protection system, and that mechanisms to protect vulnerable consumers should be developed within the framework of the general welfare system. Conclusions emphasize the need for a profound deliberation on how to address energy poverty with cross-cutting public policies that, in addition to the elements directly linked to energy policy, act on the main determinants of energy poverty, fundamentally linked, directly or indirectly, to the income of households.